NEW YORK - Bank of America Corp. sent Assured Guaranty Ltd. $850 million in cash Thursday as part of a $1.1 billion settlement on mortgage-related securities announced Friday. The out-of-court settlement is the biggest to date among municipal bond insurers.

“It’s a major transaction,” said Sabra Purtill, managing director of investor relations at Assured. “This completely settles our reps and warranties dispute with them. It also provides us with substantial protection in the future on any deterioration in our first-lien portfolio that they securitized.”

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